Onyx Pharma - ONXX

We maintain our Buy rating on Onyx (ONXX) shares with price target of $45.

Onyx delivered strong financial performance in 1Q09 and we expect the company will continue to deliver very good financials for 2009. Nexavar sales continued to grow in 1Q08, which was mainly attributed to the market penetration in liver cancer while market share has stabilized in kidney cancer market in spite of heavy competition. Total Nexavar sales came in at $178.1 million, up 17% year over year. This increase was mainly driven by international sales which reached $130 million, up 29% year over year.

EU and the US approved Nexavar for 1st line treatment of liver cancer in 4Q07. In Asia, South Korea and China have approved Nexavar for liver cancer. Other international filing is underway. We believe Nexavar sales will be further boosted in 2009 and beyond due to this new indication.

Label expansion for Nexavar into other cancer indications such as breast cancer is under way. We believe Nexavar has a potential to become a blockbuster. We model sales of Nexavar will reach $1.1 billion in 2010.

The current price is attractive and we recommend investor to buy its shares at current level.

Onyx Pharma - ONXX : FULL ANALYST REPORT

Read the full analyst report on ONXX